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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
FORM 10-Q
QUARTERLY REPORT PURSUANT TO THE SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number: 1-07533 
FEDERAL REALTY INVESTMENT TRUST
(Exact Name of Registrant as Specified in its Declaration of Trust) 
Maryland 52-0782497
(State of Organization) (IRS Employer Identification No.)
909 Rose Avenue, Suite 200, North Bethesda, Maryland 20852
(Address of Principal Executive Offices) (Zip Code)
(301) 998-8100
(Registrant’s Telephone Number, Including Area Code)


Title of Each ClassTrading SymbolName of Each Exchange On Which Registered
Common Shares of Beneficial InterestFRTNew York Stock Exchange
$.01 par value per share, with associated Common Share Purchase Rights
Depositary Shares, each representing 1/1000 of a share FRT-CNew York Stock Exchange
of 5.00% Series C Cumulative Redeemable Preferred Stock, $.01 par value per share
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.:
Large Accelerated Filer
Accelerated filer
Non-Accelerated Filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by checkmark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       Yes      No
The number of registrant’s common shares outstanding on July 30, 2021 was 77,768,140.


Table of Contents
FEDERAL REALTY INVESTMENT TRUST
QUARTERLY REPORT ON FORM 10-Q
QUARTER ENDED JUNE 30, 2021

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.Financial Statements
Consolidated Balance Sheets as of June 30, 2021 (unaudited) and December 31, 2020
Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2021 and 2020
Consolidated Statements of Shareholders' Equity (unaudited) for the three and six months ended June 30, 2021 and 2020
Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2021 and 2020
Notes to Consolidated Financial Statements (unaudited)
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures about Market Risk
Item 4.Controls and Procedures
PART II. OTHER INFORMATION
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
SIGNATURES


2

Table of Contents

Federal Realty Investment Trust
Consolidated Balance Sheets
June 30,December 31,
20212020
 (In thousands, except share and per share data)
(Unaudited)
ASSETS
Real estate, at cost
Operating (including $2,184,537 and $1,703,202 of consolidated variable interest entities, respectively)$8,412,137 $7,771,981 
Construction-in-progress (including $24,679 and $44,896 of consolidated variable interest entities, respectively)858,488 810,889 
9,270,625 8,582,870 
Less accumulated depreciation and amortization (including $359,198 and $335,735 of consolidated variable interest entities, respectively)(2,444,329)(2,357,692)
Net real estate6,826,296 6,225,178 
Cash and cash equivalents304,268 798,329 
Accounts and notes receivable, net153,293 159,780 
Mortgage notes receivable, net9,534 39,892 
Investment in partnerships11,560 22,128 
Operating lease right of use assets92,457 92,248 
Finance lease right of use assets50,474 51,116 
Prepaid expenses and other assets230,994 218,953 
TOTAL ASSETS$7,678,876 $7,607,624 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Mortgages payable, net (including $396,732 and $413,681 of consolidated variable interest entities, respectively)$466,026 $484,111 
Notes payable, net301,625 402,776 
Senior notes and debentures, net3,405,282 3,404,488 
Accounts payable and accrued expenses253,092 228,641 
Dividends payable84,881 83,839 
Security deposits payable23,381 20,388 
Operating lease liabilities74,129 72,441 
Finance lease liabilities72,041 72,049 
Other liabilities and deferred credits209,957 152,424 
Total liabilities4,890,414 4,921,157 
Commitments and contingencies (Note 6)
Redeemable noncontrolling interests212,623 137,720 
Shareholders’ equity
Preferred shares, authorized 15,000,000 shares, $.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding150,000 150,000 
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding9,997 9,997 
Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 77,760,588 and 76,727,394 shares issued and outstanding, respectively782 771 
Additional paid-in capital3,395,189 3,297,305 
Accumulated dividends in excess of net income(1,062,641)(988,272)
Accumulated other comprehensive loss(3,238)(5,644)
Total shareholders’ equity of the Trust2,490,089 2,464,157 
Noncontrolling interests85,750 84,590 
Total shareholders’ equity2,575,839 2,548,747 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$7,678,876 $7,607,624 
The accompanying notes are an integral part of these consolidated statements.
3

Table of Contents
Federal Realty Investment Trust
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (In thousands, except per share data)
REVENUE
Rental income$230,795 $175,479 $447,930 $406,277 
Mortgage interest income830 748 1,856 1,507 
Total revenue231,625 176,227 449,786 407,784 
EXPENSES
Rental expenses42,918 36,417 92,156 80,729 
Real estate taxes29,323 30,599 58,743 59,663 
General and administrative12,846 9,814 23,104 20,065 
Depreciation and amortization67,675 62,784 131,549 124,972 
Total operating expenses152,762 139,614 305,552 285,429 
       Gain on sale of real estate and change in control of interest 11,682 17,428 11,682 
OPERATING INCOME78,863 48,295 161,662 134,037 
OTHER INCOME/(EXPENSE)
Other interest income250 509 613 817 
Interest expense(31,177)(34,073)(63,262)(62,518)
Income (loss) from partnerships123 (3,872)(1,215)(5,036)
NET INCOME48,059 10,859 97,798 67,300 
Net income attributable to noncontrolling interests(1,855)(352)(3,358)(2,030)
NET INCOME ATTRIBUTABLE TO THE TRUST46,204 10,507 94,440 65,270 
Dividends on preferred shares(2,011)(2,011)(4,021)(4,021)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS$44,193 $8,496 $90,419 $61,249 
EARNINGS PER COMMON SHARE, BASIC:
       Net income available for common shareholders$0.57 $0.11 $1.16 $0.81 
Weighted average number of common shares77,474 75,394 77,160 75,377 
EARNINGS PER COMMON SHARE, DILUTED:
       Net income available for common shareholders$0.57 $0.11 $1.16 $0.81 
Weighted average number of common shares77,505 75,394 77,162 75,377 
COMPREHENSIVE INCOME$47,002 $10,366 $100,435 $60,355 
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST$45,266 $10,014 $96,846 $58,325 

The accompanying notes are an integral part of these consolidated statements.
4

Table of Contents
Federal Realty Investment Trust
Consolidated Statements of Shareholders’ Equity
For the Three and Six Months Ended June 30, 2021
(Unaudited)
 Shareholders’ Equity of the Trust  
 Preferred SharesCommon SharesAdditional
Paid-in
Capital
Accumulated
Dividends in
Excess of Net
Income
Accumulated
Other
Comprehensive
Loss
Noncontrolling InterestsTotal Shareholders' Equity
 SharesAmountSharesAmount
 (In thousands, except share data)
BALANCE AT DECEMBER 31, 2020405,896 $159,997 76,727,394 $771 $3,297,305 $(988,272)$(5,644)$84,590 $2,548,747 
Net income, excluding $1,877 attributable to redeemable noncontrolling interests— — — — — 94,440 — 1,481 95,921 
Other comprehensive income - change in fair value of interest rate swaps, excluding $231 attributable to redeemable noncontrolling interest— — — — — — 2,406 — 2,406 
Dividends declared to common shareholders ($2.12 per share)— — — — — (164,788)— — (164,788)
Dividends declared to preferred shareholders— — — — — (4,021)— — (4,021)
Distributions declared to noncontrolling interests, excluding $1,735 attributable to redeemable noncontrolling interests— — — — — — — (1,727)(1,727)
Common shares issued, net— — 847,509 9 87,124 — — — 87,133 
Shares issued under dividend reinvestment plan— — 11,516 — 1,019 — — — 1,019 
Share-based compensation expense, net of forfeitures— — 152,185 2 7,505 — — — 7,507 
Shares withheld for employee taxes— — (27,500)— (2,813)— — — (2,813)
Redemption of OP units— — 49,484  5,049 — — (5,148)(99)
Contributions from noncontrolling interests, excluding $74,530 attributable to redeemable noncontrolling interests— — — — — — — 6,554 6,554 
BALANCE AT JUNE 30, 2021405,896 $159,997 77,760,588 $782 $3,395,189 $(1,062,641)$(3,238)$85,750 $2,575,839 
BALANCE AT MARCH 31, 2021405,896 $159,997 77,706,466 $781 $3,386,917 $(1,024,417)$(2,300)$83,982 $2,604,960 
Net income, excluding $1,069 attributable to redeemable noncontrolling interests— — — — — 46,204 — 786 46,990 
Other comprehensive loss - change in fair value of interest rate swaps, excluding $119 attributable to redeemable noncontrolling interest— — — — — — (938)— (938)
Dividends declared to common shareholders ($1.06 per share)— — — — — (82,417)— — (82,417)
Dividends declared to preferred shareholders— — — — — (2,011)— — (2,011)
Distributions declared to noncontrolling interests, excluding $1,039 attributable to redeemable noncontrolling interests— — — — — — — (943)(943)
Common shares issued, net— — 16 1 (82)— — — (81)
Shares issued under dividend reinvestment plan— — 5,236 — 474 — — — 474 
Share-based compensation expense, net of forfeitures— — 4,473  3,358 — — — 3,358 
Shares withheld for employee taxes— — (71)(8)— — — (8)
Redemption of OP units— 44,468  4,530 — — (4,629)(99)
Contributions from noncontrolling interests, excluding $74,530 attributable to redeemable noncontrolling interests— — — — — — — 6,554 6,554 
BALANCE AT JUNE 30, 2021405,896 $159,997 77,760,588 $782 $3,395,189 $(1,062,641)$(3,238)$85,750 $2,575,839 
5

Table of Contents

Federal Realty Investment Trust
Consolidated Statements of Shareholders’ Equity
For the Three and Six Months Ended June 30, 2020
(Unaudited)
 Shareholders’ Equity of the Trust  
 Preferred SharesCommon SharesAdditional
Paid-in
Capital
Accumulated
Dividends in
Excess of Net
Income
Accumulated
Other
Comprehensive
Loss
Noncontrolling InterestsTotal Shareholders' Equity
 SharesAmountSharesAmount
 (In thousands, except share data)
BALANCE AT DECEMBER 31, 2019405,896 $159,997 75,540,804 $759 $3,166,522 $(791,124)$(813)$100,791 $2,636,132 
January 1, 2020 adoption of new accounting standard— — — — — (510)— — (510)
Net income, excluding $1,157 attributable to redeemable noncontrolling interests— — — — — 65,270 — 873 66,143 
Other comprehensive loss - change in fair value of interest rate swaps— — — — — — (6,945)— (6,945)
Dividends declared to common shareholders ($2.10 per share)— — — — — (158,810)— — (158,810)
Dividends declared to preferred shareholders— — — — — (4,021)— — (4,021)
Distributions declared to noncontrolling interests, excluding $847 attributable to redeemable noncontrolling interests— — — — — — — (1,677)(1,677)
Common shares issued, net— — 29  2 — — — 2 
Shares issued under dividend reinvestment plan— — 10,605 — 955 — — — 955 
Share-based compensation expense, net of forfeitures— — 114,092 1 7,028 — — — 7,029 
Shares withheld for employee taxes— — (32,390)— (3,997)— — — (3,997)
Redemption of OP units— — — — (30)— — (3,290)(3,320)
Contributions from noncontrolling interests, excluding $19,515 attributable to redeemable noncontrolling interests— — — — — — — 120 120 
BALANCE AT JUNE 30, 2020405,896 $159,997 75,633,140 $760 $3,170,480 $(889,195)$(7,758)$96,817 $2,531,101 
BALANCE AT MARCH 31, 2020405,896 $159,997 75,622,504 $760 $3,166,899 $(818,284)$(7,265)$97,501 $2,599,608 
Net income, excluding $142 attributable to redeemable noncontrolling interests— — — — — 10,507 — 210 10,717 
Other comprehensive loss - change in fair value of interest rate swaps— — — — — — (493)— (493)
Dividends declared to common shareholders ($1.05 per share)— — — — — (79,407)— — (79,407)
Dividends declared to preferred shareholders— — — — — (2,011)— — (2,011)
Distributions declared to noncontrolling interests, excluding $93 attributable to redeemable noncontrolling interests— — — — — — — (894)(894)
Common shares issued, net— — 16   — — —  
Shares issued under dividend reinvestment plan— — 6,771 — 509 — — — 509 
Share-based compensation expense, net of forfeitures— — 4,026  3,087 — — — 3,087 
Shares withheld for employee taxes— — (177)— (15)— — — (15)
BALANCE AT JUNE 30, 2020405,896 $159,997 75,633,140 $760 $3,170,480 $(889,195)$(7,758)$96,817 $2,531,101 
The accompanying notes are an integral part of these consolidated statements.
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Federal Realty Investment Trust
Consolidated Statements of Cash Flows
 (Unaudited)
Six Months Ended June 30,
 20212020
 (In thousands)
OPERATING ACTIVITIES
Net income$97,798 $67,300 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization131,549 124,972 
Gain on sale of real estate and change in control of interest(17,428)(11,682)
Loss from partnerships1,215 5,036 
Other, net8,316 5,240 
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease (increase) in accounts receivable, net4,696 (17,128)
Decrease in prepaid expenses and other assets11,370 15,887 
Increase in accounts payable and accrued expenses2,142 5,756 
Increase (decrease) in security deposits and other liabilities7,551 (13,999)
Net cash provided by operating activities247,209 181,382 
INVESTING ACTIVITIES
Acquisition of real estate(332,574)(9,409)
Capital expenditures - development and redevelopment(182,657)(213,181)
Capital expenditures - other(34,970)(30,388)
Costs associated with property sold under threat of condemnation, net (12,924)
Proceeds from sale of real estate19,896 17,015 
Investment in partnerships(2,657)(917)
Distribution from partnerships in excess of earnings1,131 849 
Leasing costs(9,265)(7,923)
Repayment (issuance) of mortgage and other notes receivable, net31,122 (320)
Net cash used in investing activities(509,974)(257,198)
FINANCING ACTIVITIES
Costs to amend revolving credit facility (638)
Issuance of senior notes, net of costs 700,085 
Issuance of notes payable, net of costs 398,732 
Repayment of mortgages, finance leases and notes payable(151,310)(3,264)
Issuance of common shares, net of costs87,286 97 
Dividends paid to common and preferred shareholders(166,847)(161,874)
Shares withheld for employee taxes(2,813)(3,997)
Contributions from noncontrolling interests104  
Distributions to and redemptions of noncontrolling interests(3,615)(5,702)
Net cash (used in) provided by financing activities(237,195)923,439 
(Decrease) increase in cash, cash equivalents and restricted cash(499,960)847,623 
Cash, cash equivalents, and restricted cash at beginning of year816,896 153,614 
Cash, cash equivalents, and restricted cash at end of period$316,936 $1,001,237 

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty Investment Trust
Notes to Consolidated Financial Statements
June 30, 2021
(Unaudited)

NOTE 1—BUSINESS AND ORGANIZATION
Federal Realty Investment Trust (the “Trust”) is an equity real estate investment trust (“REIT”) specializing in the ownership, management, and redevelopment of retail and mixed-use properties. Our properties are located primarily in communities where we believe retail demand exceeds supply, in strategically selected metropolitan markets in the Mid-Atlantic and Northeast regions of the United States, California, and South Florida. As of June 30, 2021, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 105 predominantly retail real estate projects.
We operate in a manner intended to enable us to qualify as a REIT for federal income tax purposes. A REIT that distributes at least 90% of its taxable income to its shareholders each year and meets certain other conditions is not taxed on that portion of its taxable income which is distributed to its shareholders. Therefore, federal income taxes on our taxable income have been and are generally expected to be immaterial. We are obligated to pay state taxes, generally consisting of franchise or gross receipts taxes in certain states. Such state taxes also have not been material.

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in our latest Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation for the periods presented have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the full year.
Principles of Consolidation
Our consolidated financial statements include the accounts of the Trust, its corporate subsidiaries, and all entities in which the Trust has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity (“VIE”). The equity interests of other investors are reflected as noncontrolling interests or redeemable noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. We account for our interests in joint ventures, which we do not control, using the equity method of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.
Impacts of COVID-19 Pandemic
Since March 2020, we have been, and continue to be, impacted by the novel coronavirus ("COVID-19") pandemic. While we currently expect the impact to our properties to be temporary in nature, the extent of the future effects of COVID-19 on our business, results of operations, cash flows, and growth prospects is highly uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty.
Federal, state, and local governments have taken various actions since the onset of the pandemic to mitigate the spread of COVID-19. These actions range from closure of nonessential businesses and ordering residents to generally stay at home at the onset of the pandemic to phased re-openings and capacity limitations and now to generally lifted restrictions as COVID-19 vaccination rates increase. These closures and restrictions, along with general concern over the spread of COVID-19, required a significant number of tenants to close their operations or to significantly limit the amount of business they were able to conduct,
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which impacted their ability to timely pay rent as required under our leases and also caused many tenants to close their businesses permanently. While recent results are improving, we continued to see elevated levels of collectibility related impacts and accordingly, during the three and six months ended June 30, 2021, we recognized collectibility related adjustments of $6.4 million and $21.2 million, respectively. This includes not only the impact of tenants recognized on a cash basis but also changes in our collectibility assessments from probable to not probable, disputed rents, and any rent abatements directly related to COVID-19. As of June 30, 2021, the revenue from approximately 35% of our tenants (based on total commercial leases) is being recognized on a cash basis.
For more information, see Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook.
Mortgage Notes Receivable
On May 11, 2021, two of our outstanding mortgage notes receivable were repaid. Including interest, the net proceeds were $33.8 million. As a result of the transaction, our mortgage notes receivable, net of valuation allowance, decreased $30.3 million.
Forward Equity Sales
On February 24, 2021, we replaced our existing at-the-market (“ATM”) equity program with a new ATM equity program in which we may from time to time offer and sell common shares having an aggregate offering price of up to $500.0 million. The new ATM equity program also allows shares to be sold through forward sales contracts. Our forward sales contracts currently meet all the conditions for equity classification; and therefore, we record common stock on the settlement date at the purchase price contemplated by the contract. Furthermore, we consider the potential dilution resulting from forward sales contracts in our earnings per share calculations. We use the treasury method to determine the dilution, if any, from the forward sales contracts during the period of time prior to settlement. As of June 30, 2021, no forward sales contracts have settled.
Recently Issued Accounting Pronouncements
StandardDescriptionEffect on the financial statements or significant matters
ASU 2020-04, March 2020, Reference Rate Reform (Topic 848)
This ASU provides companies with optional practical expedients to ease the accounting burden for contract modifications associated with transitioning away from LIBOR and other interbank offered rates that are expected to be discontinued as part of reference rate reform. For hedges, the guidance generally allows changes to the reference rate and other critical terms without having to de-designate the hedging relationship, as well as allows the shortcut method to continue to be applied. For contract modifications, changes in the reference rate or other critical terms will be treated as a continuation of the prior contract.

This guidance can be applied immediately, however, is generally only available through December 31, 2022.
We are still evaluating the impact of reference rate reform and whether we will apply any of these practical expedients.
ASU 2021-05, July 2021, Lessors - Certain Leases with Variable Lease Payments (Topic 842)
This ASU amends the lessor lease classification in ASC 842 for leases that include variable lease payments that are not based on an index or rate. Under the amended guidance, lessors will classify a lease with variable payments that do not depend on an index or rate as an operating lease if the lease would have been classified as a sales-type lease or a direct financing lease under the previous ASU 842 classification criteria, and sales-type or direct financing lease classification would result in a Day 1 loss.

This guidance is effective for annual periods beginning after December 15, 2021, and interim periods therein.
The adoption of this standard does not have an impact to our consolidated financial statements.
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Consolidated Statements of Cash Flows—Supplemental Disclosures
The following tables provide supplemental disclosures related to the Consolidated Statements of Cash Flows:
Six Months Ended
 June 30,
 20212020
 (In thousands)
SUPPLEMENTAL DISCLOSURES:
Total interest costs incurred$76,284 $73,942 
Interest capitalized(13,022)(11,424)
Interest expense$63,262 $62,518 
Cash paid for interest, net of amounts capitalized$60,782 $52,715 
Cash paid for income taxes$320 $428 
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
DownREIT operating partnership units issued with acquisition$ $18,920 
Mortgage loans assumed with acquisition$ $8,903 
DownREIT operating partnership units redeemed for common shares$5,121 $ 
Shares issued under dividend reinvestment plan$866 $860 
 June 30,December 31,
20212020
 (In thousands)
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
Cash and cash equivalents$304,268 $798,329 
Restricted cash (1)12,668 18,567 
Total cash, cash equivalents, and restricted cash$316,936 $816,896 
(1)Restricted cash balances are included in "prepaid expenses and other assets" on our consolidated balance sheets.

NOTE 3—REAL ESTATE
On January 4, 2021, we acquired our partner's 20% interest in our joint venture arrangement related to the Pike & Rose hotel for $2.3 million, and repaid the $31.5 million mortgage loan encumbering the hotel. As a result of the transaction, we gained control of the hotel, and effective January 4, 2021, we have consolidated this asset. We also recognized a gain on acquisition of the controlling interest of $2.1 million related to the difference between the carrying value and fair value of the previously held equity interest.
On February 22, 2021, we acquired the fee interest at our Mount Vernon Plaza property in Alexandria, Virginia for $5.6 million. As a result of this transaction, the "operating lease right of use assets" and "operating lease liabilities" on our consolidated balance sheet decreased by $9.8 million. We now own the entire fee interest on this property.
Property Acquisitions
During the six months ended June 30, 2021, we acquired the following properties:
Date AcquiredPropertyCity/StateGross Leasable Area (GLA)Joint Venture Interest (1)Gross Value
(in square feet)(in millions)
April 30, 2021ChesterbrookMcLean, Virginia90,00080 %$32.1 (2)
June 1, 2021Grossmont CenterLa Mesa, California933,00060 %$175.0 (3)
June 14, 2021Camelback ColonnadePhoenix, Arizona642,00098 %$162.5 (4)
June 14, 2021Hilton VillageScottsdale, Arizona93,00098 %$37.5 (5)
(1)These acquisitions were completed through newly formed joint ventures, for which we own the controlling interest listed above, and therefore, these properties are consolidated in our financial statements.
(2)Approximately $1.9 million and $0.6 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $8.0 million of net assets acquired were allocated to other liabilities for "below market leases."
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(3)Approximately $12.3 million and $2.6 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $14.7 million of net assets acquired were allocated to other liabilities for "below market leases."
(4)Approximately $11.6 million of net assets acquired were allocated to other assets for "acquired lease costs" and $28.3 million were allocated to other liabilities for "below market leases."
(5)The land is controlled under a long-term ground lease that expires on December 31, 2076, for which we have recorded a $10.4 million "operating lease right of use asset" (net of a $1.3 million above market liability) and an $11.6 million "operating lease liability." Approximately $2.7 million and $1.1 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $3.6 million were allocated to other liabilities for "below market leases."
Property Disposition
On March 19, 2021, we sold a portion of Graham Park Plaza in Falls Church, Virginia for $20.3 million, resulting in a gain on sale of $15.6 million.

NOTE 4—DEBT
On February 5, 2021, we repaid the $16.2 million mortgage loan on Sylmar Towne Center, at par, prior to its original maturity date.
On April 16, 2021, we repaid $100.0 million of our existing $400.0 million term loan, amended the agreement on the remaining $300.0 million to lower the current spread over LIBOR from 135 basis points to 80 basis points based on our current credit rating, and extended the initial maturity date to April 16, 2024, along with two one-year extensions, at our option.
In June 2020, we provided notice for the early repayment of the Plaza Del Sol mortgage loan, at par, on September 1, 2021.
During the three and six months ended June 30, 2021, there were no borrowings on our $1.0 billion revolving credit facility. Our revolving credit facility, term loan, and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders' equity and debt coverage ratios and a maximum ratio of debt to net worth. As of June 30, 2021, we were in compliance with all default related debt covenants.

NOTE 5—FAIR VALUE OF FINANCIAL INSTRUMENTS
Except as disclosed below, the carrying amount of our financial instruments approximates their fair value. The fair value of our mortgages payable, notes payable and senior notes and debentures is sensitive to fluctuations in interest rates. Quoted market prices (Level 1) were used to estimate the fair value of our marketable senior notes and debentures and discounted cash flow analysis (Level 2) is generally used to estimate the fair value of our mortgages and notes payable. Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the carrying amount and fair value of our mortgages payable, notes payable and senior notes and debentures is as follows:

 June 30, 2021December 31, 2020
Carrying
Value
Fair ValueCarrying
Value
Fair Value
(In thousands)
Mortgages and notes payable$767,651 $760,820 $886,887 $879,390 
Senior notes and debentures$